SSTI Digest

Finding new and creative ways for high-tech companies to succeed is an important component in business incubation. A recent study examining best practices for supporting new company formation finds it is the synergy among multiple practices, policies and services that produces optimal outcomes. At the same time, collecting standardized measures, reporting on progress annually, conducting external independent evaluations, tracking programs, and continuing to enhance practices are singled out as important policy implications. Over the past few months, several new incubator models have emerged — including a concept for a hybrid-accelerator and a startup incubator that floats. Select announcements are included below. 

To bring more tech-related companies and jobs to Wyoming, Gov. Matt Mead's budget request for the new biennium adds $15 million to broaden an existing fund established last year for the recruitment of mega data centers. If approved by the legislature, the state would make available $30 million for both large-scale recruitment and to attract smaller technology companies. Anticipating flat growth over the next two years, the budget for 2013-14 proposes a slight reduction in ongoing spending from last biennium. However, the governor recommends expanding an appropriation for data center recruitment to provide the state with more opportunity to attract large-scale high technology opportunities and jobs. In February, Gov. Mead signed a measure providing tax incentives for construction of data centers.

The White House announced two initiatives intended to help entrepreneurs grow their businesses and create jobs by increasing their access to capital and resources. The first initiative focuses on providing up to $1 billion in new capital to help early-stage small businesses. The other will attempt to provide entrepreneurs with free resources and services needed to help startups grow their businesses and create jobs. Read the press release...

Innovative companies involved in commercializing research with universities and federal agencies often cite complicated contracts and uncertainty surrounding the process as a barrier to bringing more technologies to the marketplace. In an effort to remove some of those hurdles, two new initiatives recently were announced from the University of Minnesota (UM) and the Department of Energy (DOE).

Hoping to provide companies with a stronger incentive to commercialize university-based technologies, UM has developed a new approach to intellectual property (IP) allowing companies to pre-pay a fee and receive an exclusive worldwide license with royalties taking effect only in case of significant commercial success. Agreements established under the new Minnesota Innovation Partnerships (MN-IP) allow a pre-paid option fee that amounts to 10 percent of a sponsored research contract or $15,000, whichever is greater. It includes an option to exclusive license with pre-set terms, no annual minimums or fees, and no time limits or milestones. In exchange, the university would collect a 1 percent royalty fee if annual sales involving licensed intellectual property exceed $20 million.

A new Office of Manufacturing Policy within the National Economic Council (NEC) will work across agency lines to coordinate the federal government's manufacturing programs and help develop manufacturing policy. On Monday, President Obama named Commerce Secretary John Bryson and NEC Chair Gene Sperling as co-chairs of the office, which will convene cabinet-level meetings on the administration's manufacturing initiatives.

To rebound from the global recession, the United Kingdom will focus on transforming their cities in to powerful, innovative 21st century cities according to a new economic growth plan from its coalition government. The government already has taken several steps towards making their cities "engines of growth" including:

• Local Enterprise Partnerships — public-private partnerships focused on bringing together civic and private-sector leaders to drive economic growth;
• Twenty-four Enterprise Zones to spur growth through tax increment financing;
• A €100 million ($154 million) Urban Broadband Fund to create 10 "super-connected cities;" and,
• A €744 million ($1.1 billion) Regional Growth Fund.

However, they contend that more steps are necessary to empower their cities to be drivers of growth going forward.

West Virginia coal-mining and farming businessman James C. Justice II confirmed a $10 million donation to Cleveland Clinic Innovations this week, according to an article in the Cleveland Plain Dealer. The gift will be used to establish a chair in medical innovation, to fund patent applications and to provide space and seed funding to early stage businesses. Inspired by the move, Cleveland Clinic Innovations Chairman Thomas Graham announced that he will contribute an additional $1 million for patent applications.

Most state economic development programs employ quantifiable metrics, but too few report metrics related to job creation and job quality, according to a study and report card released by Good Jobs First. The authors examined 238 economic development subsidy programs in all 50 states and Washington D.C., including corporate income tax credits, cash grants, loans, enterprise zones, worker training grants and other types of programs. Though none of the states scored an "A" in the report ratings, Nevada, North Carolina and Vermont took the top spots.

Good Jobs First is a nonpartisan policy resource center that promotes improved tracking of economic development impacts, with an emphasis on smart growth and higher-quality jobs. In Money for Something, the group maintains that states spend billions on economic development subsidies each year, but many do not sufficiently track job creation or quality.

The Idaho Department of Commerce has named Gynii Gilliam as its new chief economic development officer. Gilliam brings more than 20 years of experience to the position. Most recently, she served as executive director of Bannock Development Corporation.

David Kerr, director of the Missouri Department of Economic Development, will step down from the position Dec. 31.

Tim McLaughlin and Bob Merritt have been selected for leadership positions within the Delaware Economic Development Office. McLaughlin, formerly with the Delaware State Housing Authority, is taking over as director of business development, overseeing DEDO's recruitment efforts. Merritt, who was vice president of the First National Bank of Wyoming's loan department, joins DEDO as capital resources director, overseeing management of Delaware's Strategic Fund.

TechColumbus has appointed Tim Haynes, vice president for membership and marketing, as interim CEO beginning Jan. 1. Previously, Ted Ford, who spent six years as the organization's CEO, announced his plans to leave the post at the end of this year.

On Thursday, New York Governor Andrew Cuomo's administration announced the winners of a six-month competition to secure funding for regional job creation projects. Over the summer, ten regional economic councils were created by executive order to develop plans that would improve local economies using grants, tax breaks and other state resources. The councils then pitched their plan to state government leaders (presentations and applications are available online). The four winning councils will receive $40 million each to support their plans, with the other six councils splitting the remaining $40 million. An additional $800 million in tax incentives and existing grants will also be available to support strategies in all ten regions. Best plan awardees include:

The state of Washington's Governor Chris Gregoire announced the state will contribute $5 million to the W Fund, a new $25 million investment fund intended to spin more startups out of research labs at the University of Washington, Washington State University and other state research institutions. Administered by the Washington State Department of Commerce, key growth sectors targeted by the W Fund include biotech and clean tech. The fund intends to start considering investments in early 2012. Read the Governor's press release...

The European Union has implemented 30 of the 40 Innovation Union commitments according to State of the Innovation Union, a comprehensive progress report on the Innovation Union, the European Union's (EU) flagship initiative under the Europe 2020 growth strategy for the decade. By the end of 2011, the European Commission will have passed all six Innovation Union legislative proposals. The report highlights several of the new initiatives including the first Innovation Partnership in Active and Healthy Aging; the European Institute of Innovation and Technology; and the Smart Specialization Platform. However, the EU still has more to achieve including strengthening efforts at a national level to prioritize investments in research and innovation and set aside dedicated budgets to public procurement of innovative products and services.